CFE Bribery and Corruption 3

Question 1

A purchasing manager accepts a vacation trip from a supplier before awarding them a contract. Under fraud classification, this is BEST described as:

Accepted Answer

Bribery

Answer

When a thing of value is given to influence a future business decision, it constitutes bribery; the vacation was received before the contract award as inducement.

Question 2

What distinguishes an illegal gratuity from a bribe according to the ACFE's fraud classification?

Accepted Answer

An illegal gratuity is given after an official act as a reward rather than to influence a future act

Answer

An illegal gratuity is provided after an official act as a reward, whereas a bribe is given before or during the act to influence the outcome.

Question 3

Which investigative technique is MOST effective for detecting corruption schemes where the perpetrator is a government official receiving cash bribes?

Accepted Answer

Net worth analysis comparing lifestyle to known income

Answer

Net worth analysis identifies unexplained wealth by comparing an official's known income to their actual assets and lifestyle, revealing unexplained cash receipts.

Question 4

A company's agent in a foreign country secures government contracts by paying local officials. The company claims it did not know about the payments. Under the FCPA, the company:

Accepted Answer

May still be liable if it consciously disregarded red flags suggesting the payments were occurring

Answer

The FCPA recognizes 'conscious disregard' and 'willful blindness' as sufficient knowledge, so companies cannot avoid liability by deliberately ignoring red flags.

Question 5

Which of the following is an example of a 'kickback' scheme in a procurement context?

Accepted Answer

A vendor pays a portion of contract proceeds back to the employee who approved the contract

Answer

A kickback occurs when a vendor returns a portion of contract proceeds to the employee who influenced the award, creating an improper benefit for the corrupt employee.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Bribery and Corruption 3